Scorpion Therapeutics to Be Acquired by Eli Lilly in $2.5 Billion Deal
Deal News | Jan 13, 2025 | Ropes & Gray
In a significant development in the pharmaceutical industry, Eli Lilly has announced its agreement to acquire Scorpion Therapeutics and its pioneering PI3Kα cancer program. The agreement involves a deal valued at up to $2.5 billion, inclusive of an upfront payment and contingent milestone payments. Notably, the deal includes Scorpion spinning out a new company for its employees and non-core assets, preserving them as an independent entity with a minority stake held by Lilly. This strategic acquisition is anticipated to advance Lilly's oncology portfolio, particularly with Scorpion's oral therapy, STX-478, currently undergoing clinical trials for breast cancer and other advanced solid tumors. The acquisition deal was facilitated by legal advisors Ropes & Gray, highlighting the intricacies involved in such high-stakes transactions.
Sectors
- Pharmaceuticals
- Healthcare
- Legal Advisory
Geography
- United States – Both Eli Lilly and Scorpion Therapeutics are based in the United States, making it the primary geographical focus of the acquisition.
Industry
- Pharmaceuticals – The article primarily revolves around Eli Lilly's acquisition of Scorpion Therapeutics, both of which are in the pharmaceutical industry, specifically focusing on cancer treatment development.
- Healthcare – The acquisition of a cancer treatment program and drug development is integral to the healthcare sector, addressing unmet medical needs in cancer therapy.
- Legal Advisory – Ropes & Gray, a law firm, played a significant role in advising Eli Lilly on the acquisition, highlighting the importance of legal advisory in M&A transactions.
Financials
- Up to $2.5 billion – The maximum potential value of the deal between Eli Lilly and Scorpion Therapeutics, including upfront and milestone payments.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Eli Lilly | Acquirer | Company | A leading pharmaceutical company acquiring Scorpion's cancer treatment program. |
| Scorpion Therapeutics | Target | Company | A biotechnology company developing cancer therapies, which is being acquired by Eli Lilly. |
| Ropes & Gray | Legal Advisor | Company | A law firm that advised Eli Lilly on the acquisition. |